Is it true that cryptocurrency is influenced by the forex market?

[Potuse]

I have seen people asserted that the cryptocurrency market has a direct influence on the forex market. I want to debunk the theory because they are two different things entirely and they are not related . Do you believe that cryptocurrency is influenced by the forex market?

 

[Billy]

While there is some correlation between the cryptocurrency market and the forex market, it is not a direct influence. Both markets are impacted by a variety of global economic and political factors, and changes in one market can have an indirect effect on the other. Cryptocurrencies are a relatively new and volatile asset class, and they often behave differently than traditional currencies. Their value is influenced by a variety of factors, including adoption rates, regulatory developments, and technological advancements. Overall, while the two markets are related, they operate independently and are influenced by different sets of factors.

 

[Yohanna]

I do not think that cryptocurrency can not be influenced by the forex market because they are two different things entirely and they are not the same and as such one cannot totally influence the other.

 

[Planbizzle]

Currency exchange and price swings are a part of both cryptocurrency and forex trading, so certain traders may consider both markets when making trading choices. Furthermore, both markets could be impacted by market variables like changes in rates of interest or worldwide financial developments.

 

[Potuse]

I do not think that cryptocurrency can not be influenced by the forex market because they are two different things entirely and they are not the same and as such one cannot totally influence the other.

Because it is a financial market and there are people who would want to invest across the financial markets and any decision you take in one would affect the other.

 

[Ononivami]

Cryptocurrency could influenced by forex market sometimes because they are all financial markets and a policy could affect all the financial markets including cryptocurrency and Forex.

 

[Potuse]

Cryptocurrency could influenced by forex market sometimes because they are all financial markets and a policy could affect all the financial markets including cryptocurrency and Forex.

In addition to your statement, the policy made in the financial market could affect both the cryptocurrency and forex market . However, policies in the financial market is overwhelming.

 

[Robert90]

Only digital wallets are used for cryptocurrency transactions, and when they have been mined, they are validated. Contrarily, forex trading gives investors access to a variety of foreign currency pairs. Despite these variations, the volatility of both markets means that the forex market can still have an impact on cryptocurrency trading.